If your small business is expanding, you should think about acquiring a business credit card. Choosing one may be difficult, but the Nerds have simplified the process into 5 simple steps. Let’s get this party started:
Understand the fundamentals of business credit cards.
First, it’s critical to understand the fundamentals of business credit cards. For example, company credit cards should only be used for business purposes. Do not charge any personal expenses to your corporate credit card.
The CARD Act’s safeguards do not apply to company credit cards. This emphasizes the importance of paying your payments on time and in full.
Business credit cards frequently have bigger credit limits than personal credit cards, which is advantageous if you need to make a large number of transactions each month.
In most circumstances, you’ll be able to provide your staff credit cards and track their spending individually.
Most company credit cards require you to provide a personal guarantee. This means you’re pledging to pay off your balance with your own money if your company’s revenue is insufficient to cover the charges.
These are only the fundamentals. Making an intelligent credit card option for your business requires a solid information base, so do some further research if necessary.
Examine your company’s expenses.
Looking over your books for the previous six months and finding your two or three highest running costs provides insight into the type of benefits you should be looking for in a business credit card. Then, begin looking for a credit card that offers significant rewards in these categories.
Examine the ‘lifestyle’ of your company.
Aside from considering where your firm spends its money, selecting the correct incentives program necessitates taking into account your organization’s “lifestyle.”